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On Friday, Jefferies analyst Joseph Gallo increased the price target for CyberArk Software (NASDAQ:CYBR) to $475 from the previous $450, while reaffirming a Buy rating for the company's shares. The adjustment follows CyberArk's impressive fourth-quarter performance, where the company's Annual Recurring Revenue (ARR) surpassed consensus estimates by $11 million, partly due to a $2 million contribution from its recent acquisition, Venafi. According to InvestingPro data, the company has demonstrated robust financial health with an impressive 81% gross profit margin and 30% year-over-year revenue growth.
CyberArk's ARR showed a robust 30% year-over-year organic growth, reaching $1 billion. Gallo highlighted that CyberArk is solidifying its presence in the Identity Governance and Administration (IGA) space through the strategic acquisition of Zilla, a move that is expected to expedite growth in the company's Workforce Identity segment. Additionally, CyberArk experienced positive early traction with Venafi during the fourth quarter. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 1.73 and holds more cash than debt on its balance sheet, supporting its acquisition strategy.
The initial guidance for 2025 ARR indicates a 21% year-over-year increase, which is conservative compared to the 30% organic growth observed in 2024. Nevertheless, analysts at Jefferies anticipate that the growth rate will likely settle in the mid-20s percentage range. The firm's positive outlook is underpinned by the potential for expansion in Privileged Access Management (PAM) in the near term, and Machine Identity/IGA over the long term. While InvestingPro indicates the stock is currently trading above its Fair Value, the valuation of 15 times the enterprise value to the projected CY25 revenue is deemed justifiable by the growth opportunities ahead for CyberArk. InvestingPro subscribers have access to 18 additional key insights about CYBR, including detailed valuation metrics and growth indicators.
In other recent news, CyberArk Software has been receiving positive attention from various analyst firms following its strong financial performance. JMP Securities has lifted its price target for CyberArk to $480, praising the company's impressive Q4 results, which saw a 41% year-over-year increase in revenue and a 51% surge in Annual Recurring Revenue (ARR). DA Davidson also raised its price target for CyberArk to $475, highlighting the company's strong ARR and successful acquisition of Zilla Security, an Identity Governance and Administration (IGA) startup.
Guggenheim has increased CyberArk's price target to $455, noting the company's consistent New ARR growth and strategic acquisition of Zilla. Barclays (LON:BARC) analyst Saket Kalia has also raised the price target for CyberArk to $450, following the company's announcement of surpassing the $1 billion ARR milestone in Q4 and its acquisition of Zilla Security. These developments come on the back of CyberArk's robust financial results and strategic acquisitions, indicating a positive trajectory for the company.
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